Basics of Marketing: NTA Level 4

BBT 04202

2025
BACKGROUND
The term "marketing" is derived from the
word "market,"
Market refers to a group of sellers and buyers
that co-operate to exchange goods and
services.
Exchange is the origin of marketing activity.
When people need to exchange goods, they
naturally begin a marketing effort.
The modern concept of marketing evolved
during and after the industrial revolution in
the 19th and 20th centuries.
What is marketing?
Philip Kotler

Marketing is the process of

communicating the value of a product or
service to customers, for the purpose of
Satisfying needs and wants through an
exchange process.

Marketing is an intermediary function, or

facilitative role in an organization in
effort to connect businesses to
consumers, and increase sales volume,
as well as company image and brand
What is marketing?

Therefore, marketing is a set of business

activities designed to create customers
and satisfy their needs while achieving
the organizational goals.
On the other hand, the definitions of
marketing stress that marketing is a
process. It consists of a series of
activities that are performed by
businesses that result in exchanges of
values between marketers and markets.
EXAMPLES OF
ORGANIZATIONS THAT USE
MARKETING
Corporations: e.g. Pepsi, Coca cola, etc.
Government e.g. when promoting the health plan,
politicians during election
Hospitals
Schools and colleges
Churches
Army
The marketing process

•Marketing exists as part of an organisation

whose parts are interdependent. For an
organisation to survive, all its parts must work
together for the good of all. In the first four
steps, companies work to understand
consumers, create customer value, and build
strong customer relationships. In the final step,
companies reap the rewards of creating
superior customer value. By creating value for
consumers, they in turn capture value from
consumers in the form of sales, profits, and
long-term customer equity.
A Simple Model of the Marketing
Process

Capture
Understand Construct an Build
value
the integrated profitable
Design a from
marketplace marketing relationships
customer- customers to
and program and
driven create
customer that delivers create
marketing profits and
needs superior customer
customer
and wants value delight
equity
• A simple, five-step model of the marketing
process for creating and capturing customer
value. In the first four steps, companies work
to understand consumers, create customer
value, and build strong customer
relationships. In the final step, companies
reap the rewards of creating superior
customer value. By creating value for
consumers, they in turn capture value from
consumers in the form of sales, profits, and
long-term customer equity.
Core customer and marketplace
Concepts

Market: is a collection of buyers and sellers. They always

meet for exchange to suite their needs.
A market consists of all the potential customers sharing a
particular need or want who might be willing and able to
engage in exchange to satisfy that need or want.
A market is the set of actual and potential buyers of a
product or service.
Market place: a physical location where buyers and sellers
meet to conduct transaction.
Market space: means an electronic market place not bound
by time or space.
Service is a form of product that consists of activities,
benefits or satisfactions offered by one party to another.
It is something that is done to us for example
hairdressing, healthcare, train and bus services, banking
etc.
Virtual Market - With advancement of technology, the
buyer and sellers can, now-adays, interact with each
other by using Internet. This is called virtual market.
Basic marketing terms…..
• Value is the ratio between what a customer gets
and what he/she gives out. (Value =
Benefits/cost)
• Value is the customers’ estimate of the Product’s
capacity to satisfy a set of goals.
• Customer gets benefits and assume costs in various
ways as indicated below;
WHEN :
i. Customer Expectance=Performance (satisfied)
ii. Customer Expectance>Performance (dis-
satisfied)
iii. Customer Expectance<Performance (Highly
satisfied)
Basic Marketing Concepts…
Satisfaction is the ability of a
product to meet customers’
expectations.
Marketer is someone that offers
goods or services to the
customers for purchase.
Marketers can be the entire
organizations or individual
persons
• Customer is a person who buys goods frequently or
has a habit of doing so.
• A client is a person who uses the services or advice of
a professional person or organization. Straightforward,
we see that a client is more of a ‘formal’ form of a
customer.That’s because a client is involved in more
specific types of purchases, namely services.
NEEDS VS WANTS
• Needs: are states of felt deprivation(they include
basic physical needs for food, cloths, and safety;
social needs for belonging and affection; individual
needs for knowledge and self expression.)
• Wants: are absolute and specific needs taken as
they are shaped by culture and personality.
• Wants are desire for specific satisfiers of deeper
needs. (things someone would like to have). These
are extra things which makes like more enjoyable
for example type of food, type of car, fashionable
clothes, mobile phones, make ups, video games
etc.
• Needs are few but wants are many. Wants can be
shape by culture, lifestyle, and personality
Exchange
• Exchange is the act of obtaining the
desired products from someone by
offering something in return. It involves
transfer something of value from one
person to another (a buyer and a
seller).
•Exchange is a process rather than
event. It is a value creating
process because it normally leaves
both parties better off.
•Demand is a want backed by
willingness and ability to buy
• Market offerings are Some combination of
products, services, information, or experiences
offered to a market to satisfy a need or want.
• GOODS: Physical goods constitute the bulk of most
countries’ production and marketing efforts. Each
year, companies market billions of fresh, canned,
bagged, and frozen food products and millions of
cars, refrigerators, televisions, machines, and other
mainstays of a modern economy.
• A product is anything that can be offered to a market
for attention, acquisition, use, or consumption that
might satisfy a want or need.
• SERVICES: include the work of airlines, hotels, car rental
firms, barbers and beauticians, maintenance and repair
people, and accountants, bankers, lawyers, engineers,
doctors, software programmers, and management
consultants. Many market offerings mix goods and
services, such as a fast-food meal
Who Markets?

• A marketer is someone who seeks a

response (attention, a purchase, a
vote, a donation) from another party,
called the prospect. If two parties are
seeking to sell something to each
other, we call them both marketers.
Demand
• Demand is a want backed by willingness and
ability to buy. Human wants that are backed by
buying power
• Marketing managers seek to influence the level,
timing, and composition of demand to meet the
organization's objectives.
• Market Offering are Some combination of
product,services,information ,experience
offered to a market to satisfy a want or need.
Marketing philosophies

• The competing concepts under which

organizations have conducted marketing
activities include: the production concept,
product concept, selling concept, marketing
concept, and holistic marketing concept.
• Question arises are:-
1.What philosophy should guide a company's
marketing efforts?
2.What relative weights should be given to
the interests of the organization, the
customers, and society? Very often these
interests conflict.
• Production concept—The philosophy that consumers
will favour products that are available and highly
affordable, and that management should therefore
focus on improving production and distribution
efficiency.
• Product concept—Another important concept guiding
sellers, the product concept, holds that consumers
will favour products that offer the most quality,
performance and features, and that the organization
should therefore devote its energy to making
continuous product improvements.
• The selling concept
• Many organizations follow the selling concept, which
holds that consumers will not buy enough of the
organisation’s products unless it undertakes a large-
scale selling and promotion effort.
• The concept is typically practised with unsought goods
– those that buyers do not normally think of buying,
such as Readers Digest and double glazing. It is also
practised in the non-profit area. A political party, selling
their candidate.
• The marketing concept
• The marketing concept holds that achieving
organizational goals depends on determining the needs
and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than
competitors do.
• The societal marketing concept
• The societal marketing concept holds that the
organisation should determine the needs, wants and
interests of target markets. It should then deliver the
desired satisfactions more effectively and efficiently
than competitors in a way that maintains or improves
both the consumer’s and society’s well-being.
• The societal marketing concept is the newest of the five
marketing management philosophies.
• The societal marketing concept questions whether the
pure marketing concept is adequate in an age of
environmental problems, resource shortages, worldwide
economic problems and neglected social services. It
asks whether the firm that senses, serves and satisfies
individual wants is always doing what is best for
consumers and society in the long run.
• According to the societal marketing concept, the pure
marketing concept overlooks possible conflicts between
short-run consumer wants and long-run consumer
welfare.
Three considerations underlying the societal marketing
concept
• Society(human welfare)
• Consumers(want satisfaction)
• Company( profits)
The societal marketing concept calls upon marketers to
balance three considerations in setting their marketing
policies: company profits, consumer wants and society’s
interests. Originally, most companies based their
marketing decisions largely on short-run company profit.
• Holistic marketing concept
• The holistic marketing concept looks at marketing as a
complex activity and acknowledges that everything
matters in marketing - and that a broad and integrated
perspective is necessary in developing, designing and
implementing marketing programs and activities. The
four components that characterize holistic marketing
are relationship marketing, internal marketing,
integrated marketing, and socially responsive
marketing.
IMPORTANCE OF MARKETING
• (a) Marketing helps business to keep pace with the changing
tastes, fashions, preferences of the customers. It works out
primarily because ascertaining consumer needs and wants is a
regular phenomenon and improvement in existing products and
introduction of new product keeps on taking place. Marketing
thus, contributes to providing better products and services to the
consumers and improve their standard of living.
• (b) Marketing helps in making products available at all places
and throughout the year.
• Example AZAM , We are able to get flour all over Tanzania and
get seasonal fruits like apple and oranges round the year due to
proper warehousing or proper packaging. Thus, marketing
creates time and place utilities.
• (c) Marketing plays an important role in the development of the
economy. Various functions and sub-functions of marketing like
advertising, personal selling, packaging, transportation, etc.
generate employment for a large number of people, and
accelerate growth of business.
• (d) Marketing helps the business in increasing its sales volume,
generating revenue and ensuring its success in the long run.
• (e) Marketing also helps the business in meeting competition
most effectively.
FUNCTIONS PERFORMED IN
MARKETING
If forced to define marketing, most people, including
some business managers, say that marketing means
“selling” or “advertising”. It is true that these are parts
of marketing. But marketing is much more than selling
and advertising.
Marketing functions refers to activities performed in
marketing. Marketing covers a number of activities.
These include:
FUNCTIONS PERFORMED IN MARKETING
• 1. Marketing Research
• Marketing research involves collection and analysis of
facts relevant to various aspects of marketing. It is a
process of collecting and analyzing information regarding
customer
• needs and buying habits, the nature of competition in the
market, prevailing prices, distribution network,
effectiveness of advertising media, etc. Marketing
research gathers, records and analyses facts for arriving
at rational decisions and developing suitable marketing
strategies.
• 2. Product Planning and Development
• As you know marketing starts much before the actual
production. The marketers gather information regarding
what are the needs of the consumers and then decide
• upon what to produce. So, the task of marketing begins
with planning and designing a product for the consumers.
It can also be done while modifying and improving an
already existing product. For example, now-a-days we find
much better soaps and detergent powders than we used
to get earlier. Similarly, we have many new products
• Buying and Assembling
• Buying and assembling activities as a part of marketing
refer to buying and collection of required goods for resale.
This function of marketing is primarily relevant to those
business organisations that are engaged in trading
activities. In the context of manufacturing organisations,
buying and assembling involves buying raw materials and
components required for production of finished goods.
• 4. Packaging
• Packaging involves putting the goods in attractive packets
according to the convenience of consumers. Important
considerations to be kept in view in this connection are
the
• size of the package and the type of packaging material
used. Goods may be packaged in bottles (plastic or glass),
boxes (made of tin, glass, paper, plastic), cans or bags.
• The size of the package generally varies from a few grams
to a few kilograms, one piece to a number of pieces of a
product, or in any other suitable quantity in terms of
weight, count, length etc. Packaging is also used as a
promotional tool as suitable and attractive packages
influences the demand of the products. It may be noted
• Standardization and Grading
• Standardization refers to development of standards for production
of goods with respect to shape, design, colour and other
characteristics. If products are standardised, customers are able
to identify a product and its characteristics very well. So goods
can be sold by sample or description. Standardisation helps in
promoting the sale of the product by increasing consumers’
confidence in the product quality.
• Grading involves separating products into different classes on the
basis of certain predetermined standards relating to size and
quality. Grading is required in case of agricultural, forest and
mineral products such as cotton, sugar cane, iron ore, coal,
timber, etc.
• 6. Branding
• Branding means giving an attractive name, symbol or identity
mark to the product to make a product different from others so
that it is known by that name or symbol or mark. For example,
Masafi is the brand name of drinking water produced by
Mohamed Enterprises Limited (METL). Similarly, you must be
familiar with brands like Colgate for toothpaste, sony for
electronics and so on.
• Pricing the Product
• Pricing involves decisions regarding fixation of product prices, keeping
in view the product costs, the capacity of customers to pay, and the
prices of the competitive products. It is an important decision as it
influences the sales and so also the profits. So pricing has to be done
very carefully.
• 8. Promotion of the Product
• Promotional activities include advertising, personal selling, sales
promotion and publicity. All promotional activities involve
communication with the existing and prospective customers whereby
they are made aware of the product, its distinctive features, price,
availability etc. The objective of promotional activities is to motivate
the customers to buy the product.
• 9. Distribution
• Distribution refers to those activities that are undertaken for sale of
products to the customers and the physical transfer thereof. The first
aspect i.e., sale of product involves
• use of middlemen such as wholesalers and retailers whose services
are used for making the products available at convenient points and
helping in their sale to the ultimate
• consumers. The second aspect i.e., physical transfer involves
warehousing and transportation of goods from the point of production
to the point of sale or the consumer.
• Selling
• Selling is an important function of marketing whereby the ownership
of goods and services is transferred from the seller to the buyer for a
consideration known as price. To initiate and complete the process of
selling, the seller has to inform the prospective buyer about
availability of goods, the nature and uses of products, their prices
and the needs of the customers that may be effectively satisfied by
the product. In the process, he arouses customers’ interest in the
product and persuades them to buy it.
• 11. Storage and Warehousing
• Storage refers to holding and preserving goods from the time of their
procurement or production till the time of their sale. In other words
storage involves making suitable arrangements for preserving the
goods till they are bought by the consumers and delivered to them.
Warehousing is synonymous to storage but is normally used for
large-scale storage facility for goods and commodities. You must
have seen cold storage where vegetables like tomato, cabbage,
potato etc. are stored to be consumed throughout the year. In
marketing it is essential to store raw material and finished goods to
be used later by the company for production or for resale.
•.
• 12. Transportation
• Transportation refers to the physical movement of
goods from one place to another. In marketing,
transport as an activity refers to physical movement of
raw materials as well as finished goods from the place
of production to place of consumption. Goods are
transported through various means like railways,
roadways, waterways and airways. For heavy and bulky
goods, the railways and waterways are the best. For
other goods, it depends upon the demand, cost
involved, urgency, nature of the goods etc. to decide
about a suitable means of transportation.